Apple Announces App Store Subscriptions

Brief explanation and full press release here: iTunes shocker! Apple announces App Store subscriptions -- Engadget

It's interesting that they're also enforcing this on existing apps. This means that apps like Hulu, Netflix, Kindle, etc have to retrofit their apps to offer subscriptions directly through the app as well or be pulled. I wonder how they'll react?

This will be a disappointment, if any company decides to leave over this or increase prices. But I have a feeling the majority of users would just purchase directly through the distributor's website anyways.

This whole process will weigh heavily in my continuing with the iPad if stores such as Hulu, Netflix, Amazon, B&N have to pull out.

There is no way that Amazon or B&N (among others) can offer to sell ebooks "in app" for the same price as the iBooks store and give Apple a 30% cut of the money. The only work around I see is going to be for all these type of apps to remove the in app link to their web store. This would enable them to still sell and allow you to download your material to their apps.

This is an indication, for me at least, it may well be time to begin looking at the other alternatives that are on their way to the market.

I definitely no longer plan on upgrading to the next version iPad until all of this shakes out.

I'm hoping this will be one of those rare occasions, where Apple decides to go back on this decision -- especially before iPad 2 comes out.

I use Netflix and Hulu Plus apps regularly, and I plan on being a heavy user of the Kindle app in the future. If those services are affected by this, I'd also reconsider other options.

bobtomay said:

This whole process will weigh heavily in my continuing with the iPad if stores such as Hulu, Netflix, Amazon, B&N have to pull out.

There is no way that Amazon or B&N (among others) can offer to sell ebooks "in app" for the same price as the iBooks store and give Apple a 30% cut of the money. The only work around I see is going to be for all these type of apps to remove the in app link to their web store. This would enable them to still sell and allow you to download your material to their apps.

This is an indication, for me at least, it may well be time to begin looking at the other alternatives that are on their way to the market.

I definitely no longer plan on upgrading to the next version iPad until all of this shakes out.

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Absolutely. I was trying to talk the GF into getting a new iPad when it comes out, and just give her the existing iPad. Now I think it might just be a wise decision to keep what I've got and just use it for reading comic books, and the occasional iBook.

Apple most certainly is being exceedingly greedy here, and I firmly believe that some anti-competitiveness/anti-trust issues are being violated. It's bad enough that Apple wants the 30% cut on everything, but with that being the cut Amazon and others get for ebooks in their own deals with publishers, there is no room for profit of any kind. And since Apple says they MUST sell for the same price or less than what they sell it for via other sources, they can't even jack up the prices to make up for Apple's take. Meanwhile, Apple can still sell ebooks themselves and make a killing. They are making their 30% one way or another. When it comes to others, services like Pandora can barely pay their own bills. When Apple takes 30% off the top of their subs, they won't make it.

And this brings up another point… where does it stop? Will Apple demand a 30% cut of any advertising revenue from in-app ads (or do they already)? A 30% cut off eBay auctions? When I buy coffee via a Starbucks app, will that start counting as an in-app purchase? Where will it end?

Apple already controls the hardware of their devices through manufacturing and production in addition to the nice 50% profit margin on all devices, do they honestly need more money?

Voting with one's feet or dollars is usually what gets thing like this taken care of. I wonder how this model would fly on the MAS?

XJ-linux said:

Voting with one's feet or dollars is usually what gets thing like this taken care of. I wonder how this model would fly on the MAS?

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I bleef that if this goes on the MAS, I would for sure stop using the MAS. I don't really "buy" my apps as much as I download free apps from the iOS App Store.